Story and photo by Ronald Rey M. de los Reyes
WITH Mitsubishi Motors Philippines Corp. (MMPC) getting the ball rolling for the local production of the Mirage G4 in its 21-hectare plant in Santa Rosa City, Laguna, as part of the Comprehensive Automotive Resurgence Strategy (CARS) Program, the Japanese automaker was recently given a chance to present to President Duterte in Malacañang.
“This event marks another milestone in the Philippine car industry, as we launch the Philippine-manufactured Mitsubishi Mirage G4,” said Duterte in a speech during a ceremony attended by government officials, diplomats, executives and the media.
Mitsubishi Motors Corp. (MMC) President and CEO Osamu Masuko, Sojitz Corp. Vice Chairman Shigeki Dantani and MMPC President and CEO Yoshiaki Kato headed the presentation. Joining them were honorable Executive Secretary Salvador C. Medialdea, Trade Secretary Ramon M. Lopez, Finance Secretary Carlos G. Dominguez III, Trade Undersecretary Ceferino S. Rodolfo, Trade Assistant Secretary Rafaelita M. Aldaba, Philippine Economic Zone Authority Director General Charito B. Plaza, CARS Program Director Romulo Manlapig, Deputy Chief of Mission of Japan Embassy Atsushi Ueno, MMPC executives and business partners.
“Truly, your continued investments and expansion of business in the country have contributed to the flourishing economy of the Philippines,” the country’s head honcho stated, as he addressed the crowd at the Rizal Hall.
“The CARS Program demonstrates our commitment to pursue initiatives that will create more jobs for our people and help achieve sustained prosperity in our country,” he added.
The Mirage G4 is the first vehicle manufactured locally under the Philippine government’s CARS Program. For the uninitiated, the CARS program is a fiscal-capped, time-bound and performance-based program provided by the government aimed to help boost the Philippine automotive industry. It is specifically implemented to transform the country into an automotive manufacturing hub in the region. The government will provide incentives to carmakers who would commit to manufacturing 200,000 vehicles of their chosen model in a span of six years. The local production of the Mirage entails additional job opportunities to both MMPC and local parts suppliers. Some of the local parts suppliers will also then take advantage of technology transfer from their foreign partners for the overall improvement in operations, efficiency and quality.
With the start of the production of the Mirage G4 and the Mirage Hatchback in May, MMPC aims to produce 20,000 units at the end of the year. The new stamping plant is also set to commence operation in January 2018, which is expected to even increase further local content and push production volume of MMPC by 50 percent. They have already invested P4.3 billion for the production facilities and equipment required for the localization of the Mirage models.
Meanwhile, in his message, Masuko expressed his confidence to the local administration, “under the strong leadership of His Excellency President Duterte, there is big potential of economic growth in this country”. He also added the automotive industry, with its broad base, high-quality labor force and strong support through the government’s development policy, will contribute more to the progress of our country’s economy.
“The Mirage being one of MMC’s global car model, and now being produced in Santa Rosa plant brings forth pride to both MMPC employees and local parts suppliers. As a next challenge, we have to step up our Quality Cost Delivery programs to be competitive with other MMC production facilities,” Kato said.
If successful, the CARS Program according to the President is expected to create 7,900 direct employment opportunities and produce revenue of about P5.72 billion.
In response to the concerns of local automotive businesses, he said, “Let me take this opportunity too to assure our stakeholders in the industry that we will take due consideration of your concerns about our package of proposals and fiscal reforms. We will ensure that its impact will be fair and supportive of your growth as participants in the CARS Program,” he continued.
“Let us continue working together in enlivening our business environment and in making the Philippines not only a regional motoring hub but as one of the world’s liveliest economies. Let the cars you manufacture be the vehicles of progress and let the excellence of hard work be the fuel that would drive us towards greater success.”
Image credits: Stephanie Tumampos